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Next,assume That One of the Bidders Bids 20% Below His

question 73

Essay

Next,assume that one of the bidders bids 20% below his or her estimated value,while the other two bidders follow the same strategy as in Question 74.Using 1000 iterations report the expected profit or loss to the conservative bidder.


Definitions:

Principal

The original sum of money borrowed in a loan or put into an investment, not including profits or interest.

Sum Of Cubes

A special algebraic formula or identity that expresses the sum of two cubes in terms of a product of a binomial and a trinomial.

Polynomial

A mathematical expression consisting of variables and coefficients that involves only the operations of addition, subtraction, multiplication, and non-negative integer exponents.

Grouping

A method in algebra to simplify expressions or solve equations by combining or partitioning terms.

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